Isn’t your credit score just something that hides away in the drawers of the three major credit bureaus? Nothing you need to worry about, right? You might want to take a closer look, because throughout your life your credit report and scores may be pulled for a number of milestones and events.

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THE HIGHER THE BETTER:
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THE LIFECYCLE OF A CREDIT SCORE
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Isn’t your credit score just something that hides away in the drawers of the three major credit bureaus?
+ + + + + + + you need to + + about, right? You might want+to + + a closer look, because throughout + + + + + +
Nothing + + + worry + + + + + + + +
take + + + + + + + + + your
life your credit report and scores may be pulled for a number of milestones and events:
Average new financed car loan:
Buying a Car
45%
$26,648
= $1,000
of auto loans in
Q1 2013 went to
subprime buyers
Tip
Consider setting a time limit within which to shop for and purchase your car. There is a window (varied
by credit scoring system) during which all auto loan inquiries count as one inquiry, protecting your score. 1
If your parent(s)
cosigned on your
student loans, a
late payment could
Paying For college
It may only take
1 MISSED
OR
LATE PAYMENT
to ding your score
hurt Mom or
Dad’s score!
That’s for the life of the loan:
a missed payment
8 YEARS
in is still a missed payment 2
One study found that student
loan debt may cost as much as
$208,000
for an average household 3
Tip
Consider automatic debit payments to help prevent missed due dates.4
RENTING AN
APARTMENT
BUYING A HOUSE
CONGRATULATIONS
you’re ready to buy your first home!
But if you need a mortgage, the
Mortgage lenders typically pull all
loan company will check your
3 credit reports and all 3 scores
credit score to help determine
— for each person on the mortgage — to
your interest rate
aid in their lending decision 7
Many rental companies
Hope
they like
what they
see!
require a credit check
on potential tenants
5
PROVIDING A LOW RATE:
Average
in
30-year
4.6%
FRM was
in
July
2013,
up from
3.9%
Once you land a place,
ON A $500,000, 30-YEAR FIXED MORTGAGE:
2012 8
Here’s an example from a lender as of September 12th, 2013:
don’t forget renter’s insurance
July
— your credit score
could affect your
annual payment
A
lower credit score such as
An
620
649
Interest
rate:
Interest
5.2%
excellent credit score such as
740+
Interest
5.1%
rate:
$2,208.81
You may wish to request that
the credit check be the final
step in your approval process.
Alternatively, landlords may
(but are not required to) accept
a credit report you provide.6
An
680-699
Monthly rate:
Tip
average credit score such as
9
4.7%
rate:
Monthly rate:
Monthly rate:
$2,177.95
$2,086.59
Tip
Consider combining homeowner’s insurance
with auto insurance — you may be able to
save depending on your provider. 10
8H
GETTING MARRIED
“For richer or poorer”
probably implies “in good
credit and bad” too, right?
30%
Yet one survey
found that
of Women
&
Percentage of
men who
consider
credit scores
during dating
57%
20%
of men
75%
of women
do the same 11
wouldn’t marry someone
with a poor credit score
Getting married may not directly impact your spouse’s credit score, but joint accounts or lines of credit can! 12
Tip
A stickler for credit scores? There are dating sites that let you
weed out potential mates by their (albeit self-reported) scores! 13
553
590
626
683
720
764
One study found that every
STARTING A BUSINESS $1,000
You might be an avid saver,
inheritance recipient, VC
success story, or the apple
of an angel investor’s eye
in credit card debt
decreases a small
business’ chance
of survival by
if not
If not, a business loan is
usually in order to get started
OPEN
2%
Your credit scores play
a factor in the size and
interest rate of that loan
Tip
14
Look into an EIN (Employer Identification Number) to
15
separate your personal credit from your business’ credit.
New babies could
impact your credit
score if you haven’t
After a few years, it’s
not only your score
HAVING A CHILD
BUDGETED PROPERLY
but your child’s
and rely too heavily on lines
identity
of credit you can’t support
that you need to think about!
One report
found
that
about
10%
Tip
of children
may be
victims
of
identity
16
theft
Identity theft against children can easily go unnoticed since they haven’t applied for credit
17
orbank accounts yet. Think about checking your child’s personal credit report by age 16.
Retirement doesn’t make financial concerns
go away—they may even be greater.
Top 2 Financial Concerns That Keep Americans
50-64 Awake at Night (according to one survey)
Saving enough
for retirement
16%
RETIRING
Tip
Avoid closing long-standing
lines of credit, even if you
aren’t using them. Closing
accounts can impact your
credit history and may
reduce your available credit,
potentially lowering your score. 19
19%
CREDIT CARD
DEBT
18
your SCORES FOLLOW YOU THROUGH LIFE
Before any big buying decision or life event, consider pulling your 3
bureau credit reports and scores. This information can help you see
what specific credit activities have positively (or negatively)
impacted your credit!
20
SOURCES
1 http://www.experian.com/ask-experian/20090318-impact-on-credit-scores-of-inquiries-for-an-auto-loan.html
2 http://www.forbes.com/sites/ashleaebeling/2013/05/13/five-credit-score-misconceptions-that-can-cost-you/
3 http://www.huffingtonpost.com/2013/08/04/student-‐loan-‐debt-‐lost-‐wealth_n_3701087.html
4 http://money.usnews.com/money/blogs/my-‐money/2012/11/19/8-‐surprising-‐behaviors-‐that-‐may-‐hurt-‐a-‐young-‐persons-‐credit-‐score
5 http://www.consumerfinance.gov/askcfpb/1305/who-may-request-my-credit-report.html
6 http://realestate.msn.com/article.aspx?cp-documentid=26554459
7 http://www.mint.com/blog/credit/why-‐mortgage-‐lenders-‐pull-‐all-‐three-‐of-‐your-‐credit-‐reports-‐0413/
8 http://www.hsh.com/mtghst.html
9 http://online2.statefarm.com/bank/mortgageloanestimator/pages/xhtmls/loanEstimator.xhtml
10 http://www.consumerreports.org/cro/homeowners-‐insurance/buying-‐guide.htm
11 http://money.cnn.com/2013/07/24/pf/credit-score-dating/index.html
12 http://www.consumerfinance.gov/askcfpb/1283/if-i-have-bad-credit-score-will-it-affect-my-fiances-score-if-we-getmarried.html
13 http://money.cnn.com/2013/07/24/pf/credit-score-dating/index.html
14 http://www.entrepreneur.com/article/224518
15 http://www.usatoday.com/story/money/columnist/strauss/2013/04/15/steve-‐strauss-‐business-‐credit-‐profile/2076887/
16 http://www.cylab.cmu.edu/files/pdfs/reports/2011/child-‐identity-‐theft.pdf
17 http://www.consumer.ftc.gov/articles/0040-‐child-‐identity-‐theft
18 http://www.strategicbusinessinsights.com/cfd/news/RMJ-V2N2final.pdf
19 http://money.msn.com/credit-‐rating/credit-‐tips-‐for-‐the-‐retirement-‐years
20 http://www.experian.com/ask-experian/20090318-impact-on-credit-scores-of-inquiries-for-an-auto-loan.html
www.FreeScoresAndMore.com